If a Company Has Current Assets of $2,100,000 and Current

question 195

Multiple Choice

If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital.

• A)$2,100,000
• B)$2,600,000
• C)$1,600,000
• D)$ 500,000

---

Definitions:

Contributing Assets

Assets given by owners or shareholders as part of their investment in the company.

Capital Balances

The amount of money invested in a company by its owners or shareholders.

Net Income

Net earnings reflecting the amount of revenue left over after all operating expenses, taxes, and interest have been paid.

Partnership Agreement

A legal document that outlines the rights and responsibilities of each partner within a business partnership.